Investor Presentation June 2006

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Investor PresentationJune 2006
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Disclaimer

• During this presentation we will be discussing
  Yells business outlook and making certain
  forward-looking statements. Any statements that
  are not historical facts are subject to a number
  of risks and uncertainties, and actual results
  may differ materially.
• We urge you to read the Risk Factors and
  cautionary language in the annual report on Form
  20-F of our subsidiary, Yell Finance BV, that was
  filed with the SEC in June 2005 and is posted on
  our website.
• We also draw your attention to our press release
  which is posted on our web site, for more
  information on the risks and uncertainties.
• Annual reports for Yell Group plc are posted on
  our web site.

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Yell Group FY 06

• Revenue up 26 to 1,621m US 57 UK 43
• Adjusted EBITDA up 28 to 503m US 51 UK 49
• Cash conversion 89
• Free cash flow 253m
• Adjusted diluted EPS up 25 to 32.8p
• Total dividends per share up 21 to 15.3p

• Yell UK
• Total UK revenue up 5
• Yellow Pages rates capped at RPI-6
• Yell.com revenue growth of 65

• Yellow Book USA
• US revenue up 42 organic 15 and 27 from
  acquisitions (mainly TransWestern)
• Strong margin growth continued

Adjusted EBITDA excludes costs from lawsuits
associated with a Yellow Book advertising
campaign in FY05 and costs arising from the
TransWestern acquisition, and an exceptional
credit from releasing a provision for IPO costs
in FY06. In local currency
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Yell Group - strong historic growth
Revenue (m)
Adjusted EBITDA (m)
CAGR 17
CAGR 20
28.3 29.0 30.3 30.6 31.0 EBITDA margin
Figures for years 1-3 reported under UK
GAAP Adjusted EBITDA is stated before exceptional
costs arising from the buyout arrangement under
BT ownership in FY02 IPO costs and restructuring
costs relating to the closure of a Yellow Book
West production site in FY03 IPO costs in FY04
costs from lawsuits associated with a Yellow Book
advertising campaign in FY05 and costs arising
from the TransWestern acquisition, and an
exceptional credit from releasing a provision for
IPO costs in FY06
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UK print win, keep, grow
Unique advertisers (000s)
ARPA ()
480
478
462
451
438
-0.4 -4.4 -4.8 -3.3 -2.9 Effective Yellow Pages
price reduction
80 78 77 75 75 Retention
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Competition Commissionscurrent timetable
Notifying provisional findings
June 2006
Notifying and considering possible remedies (if
required)
June
Remedies hearings (if required)
June
Final deadline for all parties responses /
submissions
29 September
To be decided after publicationof provisional
findings
Publish report
Statutory deadline
4 April 2007
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Yell.com
Searchable advertisers at 31 March (000s)
Searches March (m)
REVENUE UP 65
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Leading the shareshift in the US market
Revenue growth for publishers
Independents market share
Source The Kelsey Group, March 2006
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Yellow Book - 60 of Independents
Yellow Book
15 ORGANIC AND 27 ACQUISITION REVENUE GROWTH
Source Yell, TransWestern
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Yellow Book print win, keep, grow
Unique advertisers (000s)
ARPA ()
70 70 70 71 70 Retention
Local currency
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Yellowbook.com
Visitors March (m)
Adverts online at 31 March (000s)
REVENUE UP 47
Includes Worldpages.com acquired with
TransWestern
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TransWestern integration

• Sales
• Compensation plan, zoning in final stages
• Churn down from c100 to c70 and more to come
• Sales per rep already c 220,000 up from
  190,000
• Operations
• All 5 databases converted
• All offices networked
• Relaunches
• Tucson closed ahead in competitive overlap market
  
• 8 more to come

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The Spanish directories opportunity
(a) Defined as average of UK, Germany, France,
Italy and Spain (b) Growth rate for 2005
Source Deutsche Bank economic research (c)
Defined as the probability of a representative
individual to use Print to look up a business in
his/her area per Kelsey Group report March
2006 (d) Defined as no of separable businesses
who advertise in directory print as a proportion
of total businesses - per Kelsey Group Global
Yellow Pages 05 (e) Defined as percentage of
population with access to Internet - per Kelsey
Group report November 2005
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Transferral of best practice to TPI

• Grow usage
• Refocus on in core product
• Improve comprehensiveness and scoping
• Speed up distribution
• Grow customer numbers
• Focus on core products
• Grow ARPA
• Reinvest on sales force and refocus sales force
  on core products
• Redesign discounting programme and simplify
  advert range
• Internet opportunity
• Accelerate unbundling, review and simplify
  pricing structure
• Incentivisation of sales force and specialised
  training

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Priorities for FY07

• UK
• Win, keep and grow print, online and voice
• Strong arguments to Competition Commission
• US
• Win, keep and grow in print and online
• Continue expansion
• Spain
• Complete acquisition
• Integration and transferral of best practice

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• Investor Relations Jill Sherratt 44 (0)118 950
  6984
• www.yellgroup.com
• Yell, Queens Walk, Oxford Road, Reading,
  Berkshire RG1 7PT
• Trade mark of Yell Limited